Zac Prince, Founder and CEO of BlockFi joins me in this episode to talk about the incredible benefits of Bitcoin as collateral for USD loans. We talk about the ‘double whammy’ of how it can be used to minimise capital gains taxes, and get an interest deduction on the use of funds. Bitcoin also makes it easier to provide global debt financing in countries where it has traditionally been difficult to operate USD lending. Zac also mentions the possibility of bitcoin financing someday being cheaper than standard USD financing.
We talk:
- What BlockFi do
- Bitcoin backed loans
- How Bitcoin enables lending into countries that traditionally were not feasible to lend USD into, or enables it at cheaper interest rates
- Process of undertaking a bitcoin/crypto backed loan
- Loan to Valuation requirements and how margin calls work
- Interest rates on Bitcoin loans
- How bitcoin-backed loans could (under certain conditions) be cheaper than standard loans
- How the bitcoin and crypto financial services market may evolve over time
- Coming products and ideas for products with BlockFi
Links:
- BlockFi website: https://blockfi.com/
- BlockFi loan calculator: https://blockfi.com/crypto-loan-calculator
- Zac Prince’s twitter: https://twitter.com/BlockFiZac
- BlockFi twitter: https://twitter.com/TheRealBlockFi
Article discussed in outro:
- Speculative Attack by Pierre Rochard: https://nakamotoinstitute.org/mempool/speculative-attack/
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Website: StephanLivera.com Message/Follow me on twitter: @stephanlivera